With construction unemployment at more than 18 percent, AGC has aggressively lobbied for increased infrastructure funding and policy provisions to stimulate demand for private- and public-sector construction.In today'sThe Hill newspaper, AGC's Jeff Shoaf, senior executive director for government affairs, said that more money for the Transportation Investment Generating Economic Recovery Program (TIGER) is needed, since there was $57 billion worth of requests and only $1.5 billion available from the stimulus plan.In addition, AGC is meeting with Congressional leaders to push for increased water infrastructure investment, increased use of tax cuts to incentivize private building construction, and discuss the delay in programmatic changes that held up some funding under the Recovery Act earlier this year.For more information, contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.
House Democratic Leadership and the Ways and Means Committee are discussing plans for advancing estate tax legislation this year. At issue is whether to extend the current tax rate and exemption level for one-year or enact a permanent fix. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. If Congress does not act, the rate and exemption level will fall to zero in 2010, only to jump up to a 55 percent and $1 million, respectively, in 2011.Some rank and file committee Democrats favor a one-year extension of the current tax rate and exemption level while promising to address a permanent solution within the context of possible tax reform legislation in 2010. However, House Democratic Leadership, moderate Democrats and Republicans favor enacting a permanent solution in 2009. And, among those advocating for a permanent solution, there is considerable support for lowering the tax rate to 35 percent and raising the exemption level to $5 million for individuals and $10 million for couples. In April, the Senate approved an amendment supporting the lower rate and higher exemption levels in the context of the fiscal year 2010 budget resolution.The cost of the making the estate tax permanent versus a one-year extension is also an issue. A one-year extension would raise about $1 billion in revenue, whereas making permanent the current levels would cost $256 billion over 10 years. AGC supports a permanent solution to the estate tax to provide AGC members more certainty in their tax planning. In a letter to Capitol Hill, AGC signaled support for efforts to lower the estate tax rate and exemption levels.For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.
On Wednesday, the Senate Health, Education, Labor and Pensions (HELP) Committee voted to move forward the nominee for Assistant Secretary of the Occupational Safety and Health Administration (OSHA). Professor David Michaels of the George Washington University School of Public Health nomination now awaits a vote on the Senate floor. There has been no opportunity for a hearing that would allow the Senate as well as the public to learn more about the approach Professor Michaels will take at OSHA. AGC was strongly disappointed that the nominee was not subject to a hearing by the HELP Committee to thoroughly explore the views that Professor Michaels has on OSHA and how he intends to direct the agency in his expected position. AGC, along with other groups, sent a letter to the Chairman and the Ranking Member of the HELP Committee asking for a hearing to further explore his views on the role of compliance assistance as a tool for work place safety, as well as the approach he plans to take on enforcement measures. In addition, the letter noted that OSHA nominees have traditionally had to appear at a hearing to answer questions. This runs counter to the Obama Administration policy of openness and transparency .At this time, it is unclear when the Senate will schedule floor time for a vote on Professor Michaels. AGC will continue to follow this nomination process.For more information, contact Kelly Knott at (202) 547-4685 or knottk@agc.org.
The Water Resources and Environment Subcommittee of the House Transportation and Infrastructure Committee held a hearing on November 18 to receive testimony from Members of Congress on issues and proposals for consideration of a Water Resources Development Act of 2010, which authorizes infrastructure projects from the Army Corps of Engineers. AGC laid out its priorities for a WRDA 2010 in a letter sent to all Members of the full Transportation and Infrastructure Committee.The first step in a Corps water resources development project is a study on the feasibility of the project. If the Corps has conducted a study in the area before, a new study can be authorized by a resolution by either the House Transportation and Infrastructure Committee or the Senate Environment and Public Works Committee. If the area has not been previously studied by the Corps, then an Act of Congress is necessary to authorize the study. The majority of studies are authorized by Committee resolution. After a feasibility study is completed, the results and recommendations of the study are submitted to Congress, usually in the form of a report of the Chief of Engineers. If such results and recommendations are favorable, the next step is authorization. Project authorizations are contained in water resources development acts, which are traditionally enacted on a biennial schedule. After a project is authorized, it would still require an appropriation of Federal funds to proceed to construction.A key issue AGC has raised over the past several years was discussed during the hearing yesterday when Rep. Charles Boustany, Jr. (R-La.) strongly advocated the need to firewall user fees collected from the Harbor Maintenance Tax and ensure 100 percent of the funds are spent for the purpose of funding dredging projects. In 2008, less than half the funds collected were spent out of the Harbor Maintenance Trust Fund.House members have until Dec. 3 to submit their projects to the committee for consideration in the bill.AGC will continue to press for passage of a WRDA 2010 bill during the 111th Congress.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.
AGC met with officials from the Government Accountability Office (GAO) on November 18 to discuss AGC's position on the implementation of the American Reinvestment and Recovery Act (ARRA). The GAO was asked by Senate leaders to review whether any new federal requirements affected the selection or start of some ARRA projects.The agency also was interested in determining the effects of the reporting requirements and the new Buy American provisions and how those requirements may affect the selection or start of certain projects. AGC shared some concerns over the reporting requirements and how the additional oversight had caused some confusion for both new and experienced federal contractors. AGC explained its experiences with the new Buy American requirements and how those rules have challenged the EPA-funded State Revolving Fund programs, and expressed concern over the rising construction unemployment in the U.S. and its effect on the industry.The meeting gave AGC an opportunity to inform GAO about the practical, and negative, effect of government-mandated project labor agreements, particularly on ARRA projects. For example, the GAO now understands the problems of having contracting officers with little construction expertise negotiate GMLA's and the impact a mandated agreement may have on the cost of an ARRA project.The GAO is expected to deliver a final report to Congress in late February, 2010. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.
December 3, 2009 | December 8, 2009 | December 10, 2009, 2:00 PM - 3:30 PM ETWith the downturn in the availability of commercial work, many construction contractors are bidding on federal and federally-assisted work, and having to comply with the Davis Bacon and Related Acts for the first time. The application of the Davis-Bacon and Related Acts to all projects funded under the stimulus is leaving many contractors uncertain about the requirements of federal prevailing wage laws and the consequences of non-compliance.Industry experts, including the head of enforcement for the U.S. Department of Labor's Wage & Hour Division (WHD) and the head of the Davis-Bacon Wage Determinations division of WHD, will provide the information necessary to understand the specific requirements of the Davis-Bacon and Related Acts in a contractor-friendly manner. December 3: Introduction to the Davis Bacon Act and Wage DeterminationsDecember 8: Compliance PrinciplesDecember 10: Reporting Requirements & EnforcementRegister today at www.agc.org/DBWebinar. Please see this webinar flyer for more information.
The last of three federal contracting webinars on Nov. 19 will provide a detailed overview of some of the most critical challenges both new and experienced federal contractors will need to know about to successfully navigate this new landscape and meet the demands of the economic stimulus package.Cost Recovery & Claims: Obtaining Fair Compensation and Avoiding Pitfalls - November 19, 1:30-3:00 pm ETGain a clear meaning of negotiating "best value" based on costs associated with the new ARRA regulationsUnderstand how the Truth in Negotiations Act and Part 31 of the Federal Acquisition Regulation can help your compensation on a jobLearn the requirements to record, prove contractor's costs and certifications related to contract proposals and claimsVisit www.agc.org/fedwebinars for full webinar descriptions and a list a speakers.
Rep. Bill Pascrell, Jr. (D-N.J.) will speak at an event next week to discuss several legislative proposals to address the U.S. EPA's estimated $450 to $650 billion investment gap in clean and drinking water infrastructure over the next twenty years. Rep. Pascrell is the sponsor of H.R. 537, the Sustainable Water Infrastructure Investment Act of 2009, which proposes removing the state volume cap of tax-exempt private activity bonds (PAB), which are a used by state and municipal governments to partner with a private party to meet a public need. PABs are one of the most useful tools of the federal government in providing long-term, capital-intensive infrastructure projects. The cap exists in each state to allow Congress to control the total volume of the tax-exempt bonds.Rep. Pascrell will be joined at the event by Sen. Ben Cardin (D-Md.), Rep Anna Eschoo (D-Calif.), several other stakeholders in the water infrastructure arena, and AGC's own chief economist, Ken Simonson. Speakers will focus on the projected water infrastructure needs, diversifying methods of financing, and the effect of investing in water infrastructure on jobs.For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org.
This week, the Chairman of the House Education and Labor Committee, Congressman George Miller (D-Calif.), introduced a bill to provide five days of paid sick leave to employees that have symptoms of a contagious illness or have been in close contact with someone who has the symptoms. The Emergency Influenza Containment Act is a direct result of the H1N1 virus, but the language of the bill is so broad that any contagious illness could be covered. Employers who direct an employee to leave work or to not come into work would have to provide up to 5 days of paid sick leave over a 12 month period. This legislation would apply to all employers with 15 or more employees. This legislation is different than another bill, The Healthy Families Act, which would require employers with 15 or more employees to allow employees to earn 1 hour of paid sick leave for every 30 hours worked. AGC is opposed to The Healthy Families Act because it requires a one-size-fits-all paid sick leave package of 56 hours and limits an employers' flexibility in creating a benefits package that would meet the needs of the construction industry's unique workforce. Congressman Miller has indicated that he wants to have a hearing and pass the Influenza Act sometime this month. As of now, AGC expects these two mandatory paid sick leave bills to remain separate. AGC will continue to report on movement on either bill.For more information, contact Kelly Knott at (202) 547-4685 or knottk@agc.org.
The Department of Labor canceled the Manchester New Hampshire Job Corps Center construction solicitation due to concerns surrounding a project labor agreement (PLA) requirement.In September, AGC of America, in cooperation with AGC of New Hampshire, sent a letter to the Department of Labor expressing concerns about the agency's decision to include a PLA mandate in solicitations related to the construction of a new Job Corps Center in Manchester, N.H., and demanding information about the agency's justification and decision-making process. Read more here.DOL announced this week that the solicitation was cancelled because it believes that "it is in the public interest for the Department to further evaluate the issues involved in the PLA requirement" as it is a new issue to DOL.AGC will continue to closely monitor any federal agency PLA activity. If your chapter becomes aware of any PLA mandates on federal or federally assisted construction projects, please send information to Marco Giamberardino at giamberm@agc.org.